USD/JPY: yen strengthening
Tatiana Norkina, FBS analyst
Having consolidated below 119.90 (it is worth mentioning that it was here that the Kijun-sen line was set, which casued the resistance after the dead cross formation), the pair continued falling to the 118th figure. On the four-hour timeframe, the prices have entered the cloud, at last confirming the correctional phase in the market. At the same time, the cloud itself is still bullish, that leaves hope for the uptrend resumption.
It should also be noted that the current levels contain strong support in the form of a lower cloud border and the daily Kijun-sen line. Therefore, a bounce up, to a four-hour Tenkan and Kijun lines, is possible in the near future.
Under these conditions, one might try to beat the short-term situations inside the cloud, if the 118.00 figure withstands the bears pressure.
Technical levels: support – 118.00; resistance – 119.00, 119.60.
1. Buy — 118.00; SL — 117.80; TP1 — 119.00; TP2 — 119.60.